Neste Oil Corporation Stock exchange release 12 October 2011 at 8.00 am (EET)
Neste Oil, The Bahrain Petroleum Company (Bapco), and nogaholding have successfully started commercial production at the new base oil plant in Bahrain. The joint venture plant produces premium quality VHVI (Very High Viscosity Index) Group III base oils for use in blending top-tier lubricants and has a production capacity of 400,000 metric t/a. The Base Oil business is one of the Neste Oil's key growth areas, and the start-up of the Bahrain plant represents a major step forward in implementing its cleaner traffic strategy.
"This increased capacity underlines Neste Oil's position as one of the world's leading producers and suppliers of Group III base oils, which we market under the NEXBASE® brand. It also means that we will be able to support the growth of our customers and further consolidate our global presence," says Matti Lehmus, Neste Oil's Executive Vice President, Oil Products and Renewables.
"Demand for premium-quality base oils is increasing globally as the new emission legislation and catalytic converter technologies demand better performing base oils. NEXBASE® base oils meet both current and future performance requirements, as well as very stringent environmental standards," continues Lehmus.
Neste Oil has a 45% stake in the joint venture plant and the company's share of the investment cost was EUR 130 million. Neste Oil is responsible for the sales and marketing of the plant's output, which increases Neste Oil's total Group III base oils capacity from 250,000 metric t/a to 650,000 metric t/a. The plant's output consists of Group III base oil varying in viscosity from 4cSt to 8cSt. The plant is located at Bapco's refinery in Sitrah on the east coast of Bahrain. Bapco is responsible for the operation of the plant.
"The new plant is a great achievement for all of the joint venture partners, as the facility is one of the world's largest units of its type and features the latest technology," continues Lehmus. "Thanks to close cooperation among the partners, we were able to get the plant up and running within the very challenging three-year schedule originally announced."
Neste Oil's base oil sales volumes will increase further after end-2013 when a partnership with Abu Dhabi National Oil Company (ADNOC) will increase NEXBASE® base oil capacity to nearly 1.3 million metric t/a.
Neste Oil Corporation
Director, Corporate Communications
For further information:
Matti Lehmus, Executive Vice President, Oil Products and Renewables, tel. +358 10 458 4072
Neste Oil in brief
Neste Oil Corporation is a refining and marketing company concentrating on low-emission, high-quality traffic fuels. The company produces a comprehensive range of major petroleum products and is the world's leading supplier of renewable diesel. The company had net sales of EUR 11.9 billion in 2010 and employs around 5,000 people. Neste Oil's share is listed on the NASDAQ OMX Helsinki.
Neste Oil has been selected into the Dow Jones Sustainability World Index and is also featured in the Ethibel Excellence Investment register. The company is included in The Global 100 list of the world's most sustainable corporations. Forest Footprint Disclosure (FFD) has ranked Neste Oil as the best performer in the oil & gas sector. Further information: www.neste.com.
NEXBASE® Group III base oils in brief
Neste Oil's NEXBASE® base oils are premium quality VHVI (Very High Viscosity Index) Group III base oils that are used in high performance engine oils and industrial lubricants. NEXBASE® base oils are designed to meet increasingly stringent environmental and performance requirements, and work reliably even in challenging conditions. Their reduced flow resistance and friction properties offer excellent low temperature fluidity and lower fuel consumption. Sulfur-free NEXBASE® base oils also help reducing exhaust and particulate emissions. www.neste.com/baseoils